Upbit Partners with Naver: A Strategic Move Toward a Korean Won-Based Stablecoin Future

South Korea’s cryptocurrency ecosystem is witnessing a groundbreaking collaboration as Upbit, the nation’s largest digital asset exchange, joins hands with Naver Pay, the country’s top mobile payment platform, to launch a Korean won (KRW)-based stablecoin.

This strategic partnership aims to modernize digital payments and bring much-needed liquidity and stability to the South Korean crypto market.

A New Chapter in South Korea’s Crypto Landscape

On July 2, 2025, Dunamu Inc., the parent company of Upbit, officially confirmed its support for Naver Pay’s stablecoin initiative. This announcement marks a significant turning point in the convergence of fintech and crypto in South Korea.

While full details are still being refined, the companies plan to develop the project in line with upcoming regulatory frameworks.

These include determining the stablecoin issuer and establishing a compliant partnership structure under South Korea’s evolving financial regulations.

Read Also: Is South Korea Adopting Bitcoin for Its Elders? Exploring the Bitcoin Pension Fund Proposal

Why a KRW Stablecoin Matters

A won-based stablecoin is a cryptocurrency pegged 1:1 to the South Korean won. This type of digital asset offers price stability, making it ideal for everyday transactions, cross-border transfers, and trading on decentralized platforms.

It also has the potential to address long-standing issues in the Korean crypto market, such as the “kimchi premium”, the price difference of cryptocurrencies between South Korean and international exchanges due to capital controls.

By facilitating on-chain swaps with widely-used stablecoins like USDT or USDC, a KRW stablecoin could reduce this pricing disparity and allow for smoother fiat-to-crypto conversions, giving South Korean traders greater flexibility and efficiency.

Timing Is Everything: Political and Regulatory Support

The initiative comes at a time when both local and global governments are ramping up efforts to regulate the stablecoin market. In the U.S., the GENIUS Act passed the Senate on June 17, with a similar bill under review in the House.

In Korea, Lawmaker Min Byoung-dug from the Democratic Party recently introduced the Digital Asset Basic Act, which includes provisions for the issuance and regulation of stablecoins.

Additionally, the Bank of Korea has paused its central bank digital currency (CBDC) development, signaling a political pivot in favor of private sector-led stablecoin solutions.

This shift in strategy has opened the door for companies like Naver and Upbit to explore new payment infrastructures with government backing.

Read Also: Stablecoin Adoption Increases! More Volume than Traditional Networks

Growing Investor Interest in Stablecoin Projects

Investor sentiment is already warming up to stablecoin-related firms. According to the Korea Securities Depository, domestic investors poured $754.72 million into Circle and Coinbase, two major players in the stablecoin space, between June 1 and June 30.

This surge of interest reflects broader confidence in the potential of stablecoins to revolutionize financial systems and create low-volatility digital assets that are ideal for mainstream adoption.

What Comes Next?

While regulatory clarity is still on the horizon, the Upbit–Naver Pay alliance signals a clear intent to lead South Korea’s stablecoin revolution.

Once the new rules are in place, both companies are expected to move swiftly to define the technical, operational, and legal frameworks of their KRW stablecoin.

An unnamed official from Dunamu emphasized that the specifics of the partnership, including the roles each company will play, will be finalized once the legal environment is fully established.

Read Also: South Korea's Bitcoin Transaction Increases! Is This Bullish for Crypto?

Conclusion

The partnership between Upbit and Naver Pay represents more than a business alliance, it's a step toward a future where stablecoins play a central role in our financial lives. Don’t miss the latest updates on this and other major crypto stories.

Stay informed by following the Bitrue Blog for the most up-to-date insights into the cryptocurrency market.

FAQ

What is a won-based stablecoin?

A won-based stablecoin is a digital asset whose value is pegged 1:1 to the South Korean won. It offers low volatility, making it ideal for payments and trading.

Why are Upbit and Naver Pay collaborating?

Upbit and Naver Pay aim to combine their crypto and fintech expertise to develop a regulatory-compliant KRW stablecoin, creating a more accessible and efficient payment ecosystem.

How will this stablecoin help South Korean crypto traders?

It can help traders avoid high conversion fees and bypass capital movement restrictions, reducing the "kimchi premium" and enabling easier swaps with global stablecoins like USDT and USDC.

What role will regulation play in this partnership?

The partnership's framework will be designed based on new South Korean laws, particularly the proposed Digital Asset Basic Act, which governs the issuance and operation of stablecoins.

When will the KRW stablecoin be available?

There is no confirmed launch date yet. The release will depend on how quickly the regulatory environment is finalized and approved.